Many business owners want their venture to grow and flourish – but it’s very difficult to achieve without a cash injection. Unless an individual has a way of self-funding a new business, through personal savings or an asset to sell such as a second property, they almost certainly have to take out a loan. Alternatively they look for an investor but will then have to share profits, which some business owners don’t like the idea of.
If you want to make it alone, then it’s time to consider your finance options. Whether you’re starting up a brand new business or simply need some investment to take your company to the next level, we’ve rounded up some of the most suitable solutions for attracting capital.
Let’s face it, a high percentage of businesses would have failed without a business loan. If you want to compete in a market and continue to grow, business investment is essential. Here are some of the most common purposes business owners require a short or long term loan:
- Business expansion
- Purchase of assets or stock to keep up with demand
- Property renovation or repair
- Staff wages
- Tax liability
Some kind of loan will be essential at some point. Nevertheless, there are many different options for businesses. The process of applying for a loan at a bank is long and often unsuccessful. Many businesses now turn to alternative finance options, which offer the same amount of capital without the hassle.
If you’re struggling to get a business loan, you could qualify for asset finance. Some loans need to be secured against something – as a mortgage is secured to a property. If you don’t make your mortgage repayments, the property is repossessed. Asset finance works in a similar way if you have expensive machinery or equipment. You can release the cash locked up in your assets to use elsewhere in the business.
Investing in the latest equipment or machinery is essential for many businesses, and it can actually play a part in attracting clients or customers. Many business owners would love to upgrade, but can’t find the necessary funds in cashflow. There are finance options available to help you grow in the way, such as leasing and hire purchase, which lets businesses spread the cost of new equipment over time.
If you’d like to find out more about investing in your business and what could be possible, talk to one of our financial experts today.